Tapestry (TPR) says it topped Street estimates on both top- and the bottom-line in its fiscal fourth quarter. Shares of the fashion giant still closed down some 15% on Thursday. 

TPR shares were punished primarily because management trimmed its earnings guidance for the full year, which did not particularly sit well with investors. 

It’s worth mentioning, however, that Tapestry stock has been in a sharp uptrend since early April. Despite the post-earnings plunge, it’s up nearly 70% versus its year-to-date low. 

Tapestry Stock Faces Tariff Risk Ahead

Tapestry lowered its full-year outlook on Aug. 14 mostly because of higher tariffs under President Donald Trump’s administration, which it believes could cost it as much as $160 million in fiscal 2026. 

According to TPR’s chief of finance, Scott Roe, tariffs will particularly hurt the company’s Kate Spade brand since “the vast majority of its business is in the United States.”

To that end, the company plans on reducing the range of Kate Spade handbags it offers across all regions by 30%, which, it argued, could help lower the potential impact of new levies. 

TPR shares slipped following the earnings release today also because the company’s sales tanked 11% in Japan and another 1% in other Asian countries. 

TPR Shares Are Not Attractively Priced

Other than Trump tariffs and their potential impact on Tapestry’s financials, the company’s shares aren’t worth buying on the post-earnings dip also because they are not attractively priced.   

According to CFRA analysts, Tapestry stock has seen its forward price-earnings (P/E) multiple grow from under 10x to more than 20x in less than 12 months. 

This suggests continued outperformance or financial strength is already priced into TPR stock at current levels leaving limited room for upside. 

CFRA’s “Hold” rating on the NYSE-listed firm comes with a price target of $96, already in line with where it’s trading at the time of writing. 

How Wall Street Recommends Playing Tapestry

Heading into the earnings release, Wall Street had a consensus “Moderate Buy” rating on Tapestry stock with a mean target of $112 indicating potential upside of roughly 13% from here. 

However, investors should practice caution in buying TPR shares since analysts could downwardly revise their estimates for the fashion holding company following its quarterly update on Thursday.